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The 6 Best Home Warranties for Luxury Homes
By Susan Doktor MONEY RESEARCH COLLECTIVE
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- Industry leader since 1971
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- No inspection or maintenance records required
- 30-day workmanship guarantee
Homes come in all shapes and sizes. And yours may be bigger and shapelier than many other homes in your neighborhood. It may be equipped with a pool, a whirlpool in the master bath, professional-grade kitchen appliances and a host of other bells and whistles. All of that may make living there fabulous. But the more lavishly your home is equipped, the more expensive to maintain it’s likely to be. From repairing a slate roof to replacing a malfunctioning Viking stove, maintenance expenses can sure put a damper on the joys of living in a luxury home.
All homeowners grapple with the cost of maintaining a home in tip-top shape. That’s how the home warranty industry was born. People looking for a way to hedge against expensive repairs often find the solution lies in budgeting for home warranty coverage, instead of paying for unexpected repairs as they come. There are more than 50 home warranty providers in the US today. Are any of them best suited for luxury homeowners? The answer is yes and no. Let’s find out why.
Table of Contents
Best Home Warranties For Luxury Homes Company Reviews
Home Warranties For Luxury Homes Guide
Best Home Warranties for Luxury Homes FAQs
Best Home Warranties For Luxury Homes Company Reviews
Choice Warranty
- Special offer: get your first month of coverage free
- Choose from two whole-home combination plans
- Moderate $85 service call fee
- No systems-only or appliance-only plans
- Fewer optional add-ons than other companies offer
At Choice Home Warranty, you can choose from two whole-home plans, Basic and Total.
The company’s Basic plan includes coverage for several, but not all, major appliances. For example, clothes washers and clothes dryers are not covered under this lower-cost option. Nor are air conditioning systems.
The cost of the Basic plan for a home located in a mid-size midwestern city is $73.50 per month. That includes a surcharge of $25 that the company assesses if your home is larger than 5,000 square feet, which many luxury homes are. Extra space is luxurious, after all.
If you opt for the Total plan, you will get coverage for your washer, dryer and air conditioning system. Ductwork is included in the company’s HVAC coverage. Additional home appliances like your washer and dryer and major systems such as your air conditioner and ducts are included. The Total plan costs $81.60 per month — a modest increase over the Basic plan.
Both Choice Home Warranty plans can be tailored to meet a luxury homeowner’s needs with add-on coverage. Among the more compelling options for owners of high-end homes are central vacuum systems, second refrigerators and stand-alone freezer protection. If your basement tends to get damp, you can also add protection for your sump pump.
But perhaps most important for luxury homeowners are the high coverage limits that come with a Choice Home Warranty plan. The company is obligated to pay $3,000 per 12-month period for each covered item under the plan you purchase. While not the highest coverage limits we’ve come across, those are considerably higher payments than some home warranty companies agree to.
Select Home Warranty
- Offers plans for systems or appliances only
- Modestly-priced combination plan
- Discount applied when you purchase a multi-year plan
- Low coverage limits on certain systems
- Service contracts have many exclusions
Select Home Warranty offers luxury homeowners three plans to choose from: an appliance plan, a systems plan and a plan that combines the two. The company’s plans stand out for including limited roof leak coverage, which is often only offered in top-tier plans or as add-on coverage for an additional cost.
Select Home Warranty’s Bronze Care plan is the company’s appliances-only plan. It covers such kitchen and laundry room staples as refrigerators, ranges and cooktops, built-in microwaves, clothes dryers and garbage disposals. It excludes coverage for clothes washers, however. For washer coverage, you must purchase the company’s premium Platinum plan.
Select Home Warranty’s Gold Care is a systems-only plan that provides coverage for heating, air conditioning, electrical and plumbing systems, ductwork, and water heaters.
Select Home Warranty’s Platinum Care plan is a combo plan that includes everything included in the company’s two lower-cost plans combined and expands coverage to include plumbing stoppages and clothes washers.
Select Home Warranty offers several add-on coverage options that may be of interest to luxury homeowners, including coverage for stand-alone freezers, lawn sprinkler systems, well pumps and septic systems, which may be important if you have a large yard to take care of or are not connected to municipal water. Extra charges for these additional items are modest with Select Home Warranty.
If you’ve been comparing home warranty plans and prices, you may notice that home warranty providers ask you to indicate the size of your home before quoting a price. Typically homes over 5,000 square feet cost more to cover. Select Home Warranty does not ask the question. Nor does it mention that it costs twice as much to cover homes larger than 5,000 square feet. Even accounting for the 100% increase in premiums, however, Select Home Warranty’s prices are relatively modest when compared to its competitors.
As a luxury homeowner, the other point that may concern you is that the company has a maximum payout of $500 on appliances. So the company doesn’t offer the best home warranties for high-end appliances. If you own commercial grade or premium brand appliances, that may not be adequate should your appliance need to be replaced.
American Home Shield
- Stand-out $6,000 per appliance coverage limit (ShieldPlatinum only)
- Choice of two service call fees ($100 or $125)
- Over 50 years in the home warranty industry
- Fewer add-on coverage options than some plans
- No coverage for homes over 10,000 square feet
With over a half century in business, American Home Shield (AHS) has established itself as a leader in the home warranty sector. AHS provides three flexible plans — ShieldSiver, ShieldGold and ShieldPlatinum — that can be tailored to suit different needs, including one for home systems and two that encompass systems and appliances.
For luxury homeowners, one of the biggest advantages of American Home Shield is the exceptionally high coverage limits of its ShieldPlatinum plan. Covered items, including appliances, are covered up to $6,000 per item per year. That means if your SubZero refrigerator and Wolf stove break down in the same year, the company has you covered. The ShieldPlatinum plan also comes with extra perks, such as coverage for code violations and modifications, limited roof leak repairs and complimentary HVAC tune-ups. AHS also stands out from its competitors in that it covers systems and appliances regardless of whether they have been adequately maintained.
AHS’s add-on coverage options are somewhat more restricted than those offered by some other home warranty service providers. But the company does offer protection for pools and spas. You can also add coverage for a guesthouse on your property.
One caveat we need to mention: American Home Shield may not cover homes larger than 5,000 square feet. Home warranty companies do make exceptions, though, so if you’re interested in the company, it’s worth a call to see if AHS will work with you on your large home.
First American Home Warranty
- Appliances covered up to $3,500
- Ductless mini-split systems included in HVAC coverage
- No limits on refrigerant replacement
- Starter Plan excludes washers and dryers
- Only offers combination plans
With First American Home Warranty, homeowners have the option to select from three plans — Starter, Essentials and Premium — that provide coverage for a combination of appliances and systems. The more you pay, the more items will be covered under your service contract. If you want to lower your monthly premiums, you can choose a higher service call fee: the company offers deductibles ranging from $75 to $125.
The Starter Plan covers most significant systems such as heating, cooling, plumbing and electrical. However, it offers limited appliance coverage — washers and dryers are excluded — and does not cover water heaters. But if you live in an older home where systems haven’t been updated, the Starter plan is a good choice to protect against some of the most expensive repairs you may have to face.
The Essentials plan provides more comprehensive coverage than the Starter plan, including coverage for washers, dryers and water heaters. The cost difference between the two plans is minimal, making the Essentials plan a better value.
For customers looking for even more coverage, the Premium plan offers enhanced plumbing and kitchen appliance coverage, including shower heads, shower arms, hose bibbs and instant hot water dispensers.
Aside from the three plans, First American Home Warranty offers additional coverage options such as pool and spa coverage, water softener systems, garbage disposals and HVAC tune-ups.
For luxury homeowners looking for their best home warranty deal, it’s not just about what’s covered, but also the extent of coverage. In the case of First American Home Warranty, appliance coverage is quite respectable. The company will pay up to $3,500 to repair or replace each malfunctioning appliance in your home.
America’s First Choice Home Club
- Longest work guarantee: up to three years with a three-year plan
- Four plans to choose from
- Pick your own licensed service tech (approval in advance required)
- Three deductible choices: $75, $100, $125
- $75 cancellation fee
The workmanship guarantee provided by America’s First Choice Home Club is the longest we have encountered. If you file a claim, the work that is done by your service tech is guaranteed for the entire duration of the plan you purchase, whether it is a one-year or a three-year plan. (You can also choose your own licensed service tech, if you have a trusted contractor.) The only condition is that you must maintain your enrollment in the plan to keep the workmanship guarantee valid. Nonetheless, this guarantee can lead to substantial savings throughout the plan’s duration.
In addition to the extensive workmanship guarantee, America’s First Choice Home Club offers a choice of four plans that cater to different needs and budgets. Homeowners can select either systems coverage or appliance coverage, or they can choose from two combination plans.
The company’s pricing is also more affordable than many other plans on the market. When you choose the company’s highest deductible, its Silver Appliances plan comes in at about $31.50 per month, while its most expensive Platinum plan costs just $49.50 for a large home in a mid-size midwestern city. It includes coverage for attic fans, exhaust fans and garbage disposals, as well as coverage for kitchen and laundry appliances. The plan also includes full coverage for breakdowns in your plumbing, electrical, air conditioning and heating systems. Notably, AFC Home Club does not charge extra for homes over 5,000 square feet.
The company offers add-on coverage options for 11 different home features, including pools, spas and double ovens. Add-on coverage prices are on the high side, however. For example, double-oven or central vacuum coverage costs an extra $25 per month. The cost to cover an inground pool/spa combination is $150 per month.
AFC Home Club has a respectable major appliance coverage limit of $3,000 per covered item per year. More minor appliances have lower coverage limits, such as a $500 limit on garage door openers and a $150 limit on garbage disposals and hot water dispensers.
If you choose the company’s Platinum plan, ice makers are covered for your home’s primary refrigerator. You can also add coverage for the icemaker in your second fridge as an option.
Cinch Home Services
- 180-day workmanship guarantee
- Modest prices across all three plans
- Three deductible options
- Fewer add-on coverage options than some companies
- Lower coverage limits than you may require
Cinch Home Services stands out from the crowd by virtue of its generous 180-day workmanship guarantee. A chief complaint among home warranty buyers is that home protection plans may charge serial service fees when a repair is done improperly and a covered system or appliance fails again. Cinch Home Services solves that problem by standing behind its work for a much longer-than-standard period of time. Many home warranty companies only guarantee their work for 30 days.
While many home warranty companies bundle both types of coverage, Cinch Home Services offers separate system and appliance coverage to cater to a wider range of homeowners’ needs. Homeowners seeking protection for kitchen and laundry appliances can opt for Cinch’s economical appliances-only plan. Similarly, those looking to safeguard their home’s built-in systems exclusively can choose Cinch’s systems-only plan.
Cinch Home Services provides three service call fee (deductible) options: $100, $125 and $150. Although these deductibles are relatively high compared to those offered by some other companies, they enable Cinch to keep homeowners’ monthly payments low. It’s up to you, as a homeowner, to decide whether you prioritize a low monthly payment or low service call fees. High service call fees can offset the savings of a low monthly payment if homeowners make repeated claims.
Once you’ve selected the appropriate plan, Cinch offers add-on coverage options, such as pools and spas, well pumps and septic system plumbing, which you can customize to your liking. Cinch’s Premier Upgrade Package provides additional coverage for permits, code upgrades and more.
Cinch covers individual appliances up to $2,000 per term. The overall annual policy limit is $10,000. That’s a lot of coverage for relatively low premiums and an excellent workmanship guarantee.
Home Warranties For Luxury Homes Guide
Main things to know before purchasing a home warranty for luxury homes:
- Home warranty coverage for luxury homes is largely the same as coverage for more modestly-equipped homes.
- Some home warranty companies charge a premium for homes larger than 5,000 square feet.
- Some home warranties exclude high-end or commercial-grade appliances.
- Coverage limits on appliances may or may not be adequate to cover more expensive brands. Ideally, find a plan that offers at least $3,000 per covered appliance per term.
- Some home warranties offer flexible service call fees. You can lower your premiums by choosing a higher deductible.
- Combination plans vary by which appliances and systems are covered. For example, one combination plan may offer coverage for electrical systems, while another less expensive plan from the same company may not.
- A home warranty may not be necessary if you’re moving into a brand new home, where systems and appliances are still under manufacturer warranties.
- Home warranties are different from homeowner’s insurance policies. They will only cover home features that need repair. They will not cover any damage caused by a faulty system or appliance. But your home insurance likely will, subject to its terms, conditions and deductibles.
What does a home warranty for luxury homes cover?
Home warranty companies typically cover systems, appliances, or both. But minor systems and appliances such as doorbells and trash compactors may not be covered in a company’s less expensive plans. Luxury homeowners may want to focus on plan options that include these particular appointments among covered items. Bear in mind that the typical home warranty only covers items due to normal wear and tear. Items that have been poorly maintained may not qualify for coverage. In addition, many warranties exclude pre-existing conditions.
How much does a home warranty for a luxury home cost?
Your home warranty cost will vary depending on the amount of standard coverage that’s included in your plan, how many add-on options you choose, the deductible you select and your location. A home warranty in Los Angeles, California, where labor costs are very high, is likely to cost more than in a city like St. Louis, Missouri.
How does a home warranty work for high-dollar items?
A home warranty for luxury items works pretty much the same as a home warranty for standard items. Sometimes, coverage for top brands is available only as an option that costs extra. In either case, if you have a lot of high-ticket features in your home, you should study the coverage limits per item indicated in your contract. Choose a plan with coverage limits high enough to cover home repairs and replacement of those items.
Best Home Warranties for Luxury Homes FAQs
Do you need a home warranty for luxury homes?
Strictly speaking, if your finances are solid enough to absorb the cost of home repairs and replacement costs, you don't need a home warranty for a luxury home. But home warranties can certainly save you money. Even well-to-do homeowners want to keep as much money in their bank accounts as they can.
Are home warranties worth it for my luxury home?
Many luxury homeowners appreciate the peace of mind and budgeting simplicity that home protection plans offer. The best home warranty companies offer whole-home plans that cost under $100 a month, making home warranties both affordable and worth the investment.
Home warranties are often included in real estate transactions. For example, a home seller may offer a home warranty plan to incentivize home buyers to purchase. In that case, the warranty costs the home buyer nothing. You can't argue with that. So if you're shopping for a new home, look for one that comes with a year of free home warranty coverage.
How can I submit a claim with a home warranty for luxury homes?
Most home warranty companies allow customers to file claims 24/7 online or via email. Your warranty company will get in touch with you to make a service call appointment. Once a technician visits your home, you'll be charged the service call fee that you agreed to in your contract.
What high-end appliances are covered by a home warranty?
As a luxury homeowner, you should be aware that many home warranty companies restrict coverage for commercial-grade appliances entirely. Or they may offer coverage of these expensive items only for an additional cost. Before deciding which home warranty to purchase, learn about the company's general appliance policy. Find out how the company defines "commercial" or "professional" grade. Read the sample contract provided by the company you're considering and check coverage limits per appliance per term. Then you can decide whether the coverage you're able to get is sufficient for your needs and whether the cost of coverage is worth it.
